China Seeks 'Fairness'
A senior Chinese official played down speculation over whether China will offer funds to help address the global financial crisis at next week's economic summit in Washington, saying China's focus at the meeting will be on lobbying for the interests of developing countries.
'The summit will not be about whether China will spend money to bail out' other countries or financial institutions, He Yafei, vice minister of foreign affairs, said Thursday at a briefing on the summit, which is scheduled for Nov. 15. Chinese officials expect to press issues that will improve 'fairness' in the global financial system for developing nations, he said.
Global leaders are watching carefully what role China will play amid the global financial uncertainty. China so far has limited its response to aiding its domestic economy, and to calling for cooperation and coordination in the global response. But the country sits on nearly $2 trillion in foreign-exchange reserves and its banks are well capitalized, prompting some governments to urge the Chinese government to do more.
French President Nicolas Sarkozy has said he wants emerging nations such as China and India to exercise more clout in global economic decision-making. Gordon Brown, the British Prime Minister, also recently called on China and oil-rich Persian Gulf states to fund an increase in an International Monetary Fund bailout fund.
Beijing hasn't indicated what specific proposals it might bring to the Washington summit, which will gather top officials from leading economies. China's delegation is to be led by President Hu Jintao, and include central bank chief Zhou Xiaochuan, and Minister of Finance Xie Xuren.
Mr. He on Thursday didn't rule out a funding commitment from China. He said the government 'will take a serious look' at any bailout plan because 'China is a responsible nation.' But he also reiterated statements indicating Beijing's focus is on its domestic economy -- whose continued health, he said, is itself a major contribution to global financial stability.
China could face significant local resistance to any announcement of new funding for global financial institutions. Critics in the country have blasted the government over its investments overseas, and called for the use of resources to stimulate China's own economy. China Investment Corp., the government's investment fund, has racked up big paper losses on multibillion stakes it bought last year in Blackstone Group LP and Morgan Stanley.
Mr. He said China's goal 'is to use the summit to send strong signals that countries will not only address short-term concerns, but also have a long-term focus on systemic weaknesses.'
He said international institutions such as the IMF and the World Bank 'need reforms.' One major issue is inadequate voting rights for developing nations, and Chinese officials will ask for more representation for them, Mr. He said.
China, he added, also will urge other governments not to neglect developmental concerns, particularly for the world's poorest nations, while expending resources to tackle this crisis. |
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